The Department of Justice (DOJ) is still untangling the financial webs woven by criminals to take advantage of the federal money that was flowing at the height of the pandemic.
Case in point, a former news anchor from Phoenix was found guilty by a federal jury in Texas of conspiring to cheat the government of Covid relief funds.
The verdict was delivered following a weeklong trial, as The Daily Mail reported.
Stephanie Hockridge and her husband, Nathan Reis, co-founded Blueacorn.
Blueacorn was a financial technology company that directed businesses in applying for the government Paycheck Protection Program.
Before her 2018 retirement from television, Hockridge spent seven years as a news anchor for Phoenix’s ABC15.
Matthew R. Galeotti, the head of the Justice Department’s Criminal Division, said:
“This defendant exploited a national emergency to personally profit from a taxpayer-funded program intended to support vulnerable individuals and small businesses.
“This conviction demonstrates the Department’s commitment to holding individuals accountable for defrauding the government and wasting taxpayer money.”
She and Reis were said to have falsified paperwork in order to seek loans totaling hundreds of thousands of dollars that they did not qualify for.
They allegedly went on to establish a business called “VIPPP” where they advised clients on how to submit false PPP loan applications in exchange for kickbacks proportional to the amount of the loans, as stated in their indictment.
A jury convicted Hockridge of one count of conspiracy to commit wire fraud; however, she got off on the other four charges.
A maximum of twenty years behind bars is in her future after she receives sentencing in the next few months.
Acting U. S. Attorney Nancy E. Larson for the Northern District of Texas said:
“During a time of crisis in our country, this defendant abused the generosity of the American people by stealing money dedicated to the survival of small businesses to fraudulently enrich herself.
“We are proud of the diligent work of our law enforcement partners to hold her accountable and bring her to justice.
“Make no mistake, our efforts to bring such fraudsters to justice are ongoing.”
Hockridge said she sought to expose and prevent fraud, claiming she was misled.
Her legal team attempted to justify her behavior by saying it was “a sincere effort to support small businesses during a time of unprecedented need.”
Instead, she blamed her husband for keeping her in the dark.
Reis will face a trial in August of this year.
The charges against him included four counts of wire fraud and one count of conspiracy to commit wire fraud.
Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office said:
“This verdict is a victory for justice, accountability, and the American public.
“In a time of crisis, the Paycheck Protection Program was created as a lifeline to keep small businesses afloat and families fed.”
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